Chicago is My Home

31
Mar

Fortune Brands Loses Bid to Buy ABSOLUT to French Firm Pernod Ricard

Author: Adam Fendelman, Category: Business

DEERFIELD, Ill. – Fortune Brands, which is the world’s fourth-largest premium liquor company, has lost its bid to buy Sweden’s ABSOLUT vodka brand to French company Pernod Ricard.

“While we had hoped to purchase ABSOLUT at the right price, we didn’t hesitate to put our shareholders’ interests first,” said Bruce Carbonari, president and CEO of Fortune Brands, in a statement.

“We didn’t see the appropriate return for our shareholders at the announced price. We preserved our financial flexibility to create significant value in other ways,” he added.

Deerfield, Ill.-based Fortune announced Monday that it will soon offer a stock repurchase program to its investors. The company will also continue to distribute ABSOLUT through its Jim Beam brands in the United States.

By Stephanie Huls

31
Mar

Chicago-Based Wrigley to Woo Chinese Chewers With Wolfberry, Aloe Gums

Author: Adam Fendelman, Category: Business

CHICAGO – Chicago gum maker Wm. Wrigley Jr. Co. is betting that the Chinese will put aloe – as in the aloe vera often found in lotions – in their mouths. The company is touting its “medicinal advantages” and skin-improving abilities specifically for Chinese chompers.

But will people get their heads around the concept of chewing aloe to improve their skin instead of directly applying it through lotions and soaps? Also, will people who have higher tendencies to smoke cigarettes than chew gum get addicted to such a Western inclination?

In addition to aloe gum, Lang Yi – the name of the new Wrigley gum line that began to be pioneered in 2007 only in China – is also featuring wolfberry gum with the allure of boosting energy.

Wolfberry, which is the common name for the fruit of two very closely related species, is only significantly cultivated commercially in China. Aloe is a stemless or very short-stemmed succulent plant that’s native to northern Africa.

By Adam Fendelman

28
Mar

Amid Looming Delisting, Will Sun-Times Media Group Spike its Stock?

Author: Adam Fendelman, Category: Business

CHICAGO – Traditional media outlets continue to take one hit after another. Major metropolitan newspapers including the Chicago Tribune, Chicago Sun-Times, Los Angeles Times and St. Louis Post-Dispatch have all seen significant layoffs in recent months.

Some newspapers have even gone strictly to the Web. In recent months, the Chicago Defender primarily went to an online publication – now only publishing in print biweekly – and The Capital Times in Madison, Wis. did the same.

Why should consumers buy a newspaper whose news is already a day old when they can just hop online or their mobile phone and know what’s happening right now?

The Sun-Times Media Group, whose investors in recent months have been talking about selling, learned of yet another hurdle this week. In six months, will there even be stock for shareholders? The group says it was notified on Wednesday that it’s not in compliance with the New York Stock Exchange’s Class A common stock requirements of $1 a share.

By Stephanie Huls

28
Mar

Motorola’s Divisive Split: Result of a Rock-Solid Plan or Investor Pressure?

Author: Adam Fendelman, Category: Business

SCHAUMBURG, Ill. – Does Motorola have a rock-solid plan for the newly spilt corporation or did the company fall to investor pressure?

Motorola’s announcement this week to spilt into two came days after billionaire investor Carl Icahn filed a lawsuit against the company in Delaware court asking for it to release documents about its handset business and executives.

While the split is what Icahn and other investors have been calling for in recent months, the fact remains that Motorola’s handset business is struggling. Analysts have criticized the cell phone maker for not releasing a new, game-changing product since the RAZR.

Beyond mobile phones, Motorola also makes wireless broadband solutions, bar-code scanners, radios, software and applications. Experts are questioning whether the split is a safety net to protect this end of the business because the mobile unit isn’t coming up with an adequate revenue maker.

By Stephanie Huls

26
Mar

FAA Orders Inspections of Older Boeing 737 Planes on Reports of Leaks

Author: Adam Fendelman, Category: Business

CHICAGO – Following reports of fuel leaks in the aircraft, the Federal Aviation Administration (FAA) has ordered inspections of older Boeing 737 model planes. The problem is in a potential faulty bolt. The FAA in Aug. 2007 required inspection of the 737s after a China Airlines plane exploded on a runway in Japan due to a fuel leak.

The FAA is now ordering that all older models of the 737 planes be inspected within 90 days of April 8. Continental Airlines, Southwest Airlines and United Airlines all own 737 models from Chicago-based Boeing and will have to comply with the FAA.

By Stephanie Huls

26
Mar

Motorola Announces Split Into Two Independent Publicly Traded Entities

Author: Adam Fendelman, Category: Business

SCHAUMBURG, Ill. – Motorola in Schaumburg, Ill. on Wednesday announced that the company will spilt into two independent, publicly traded entities. The ailing mobile phone maker’s board of directors voted to divide the company’s mobile devices and broadband/mobility solutions businesses.

“Our priorities have not changed with today’s announcement,” said Motorola CEO Greg Brown in a Wednesday statement. “We remain committed to improving the performance of our mobile devices business by delivering compelling products that meet the needs of customers and consumers around the world.”

Brown also announced that Motorola will be searching for a CEO to run the newly independent mobile devices unit. Motorola has projected that the separation of the company will be complete in 2009, and if approved by the IRS, could be a tax-free division transaction.

By Stephanie Huls

25
Mar

Tribune Co. Says San Diego TV Affiliate to Switch to FOX, Names New CFO

Author: Adam Fendelman, Category: Television

CHICAGO – The Tribune Co. announced on Tuesday that San Diego television affiliate KSWB will become a FOX channel. The station will change from CW programming to FOX affiliate programs.

“This is a huge development for our television group. [It] makes it clear that the new Tribune is aggressive and willing to move quickly to upgrade our position in a market especially when we can improve our financial results almost immediately,” said Tribune Broadcasting President Ed Wilson in a Tuesday statement.

The Tribune Co. also announced on Monday that Chandler Bigelow will succeed Don Grenesko as the company’s CFO.

By Stephanie Huls

25
Mar

Chicago-Based CME Group Acquires London-Based Credit Market Analysis

Author: Adam Fendelman, Category: Business

CHICAGO – The CME Group announced on Tuesday that it has acquired Credit Market Analysis (CMA), which is a credit provider of market derivatives data.

“When we think of diversification at CME Group, we look beyond asset-class diversity. [We] think more strategically in terms of products and services where we believe we can deliver innovation and create new value for the market,” said CME Chairman Terry Duffy in a Tuesday statement.

The CME Group says London-based CMA will provide it with greater trade clearing opportunities. The CME Group will purchase 100 percent of the capital shares of CMA including all the intellectual property and operating assets. No further details of the acquisition were disclosed.

Duffy added: “The CME Group’s over-the-counter strategy has focused on identifying opportunities where we can leverage our strengths in technology and clearing services, which will create greater efficiencies and opportunities for market participants.”

By Stephanie Huls

24
Mar

Ex-U.S. House Speaker Dennis Hastert Joins Goeken Group in Naperville, Ill.

Author: Adam Fendelman, Category: Business

NAPERVILLE, Ill. – Medical records firm Goeken Group Corp. in Naperville, Ill. has hired former U.S. House speaker Dennis Hastert. The health care development company has brought on Hastert as a consultant and strategic advisor.

In Dec. 2007, former U.S. Senate majority leader Bill Frist joined Chicago private equity firm Cressey & Co. as a partner to make new investments in health care companies.

By Stephanie Huls

24
Mar

Billionaire Carl Icahn Filing Lawsuit Against Motorola to Release Documents

Author: Adam Fendelman, Category: Business

CHICAGO – Billionaire investor Carl Icahn said on Monday he’s filing a lawsuit against Motorola in Schaumburg, Ill. to force the company to release documents related to its cellular handset business and records of airplane usage by senior management.

Icahn wrote a letter to Motorola shareholders that said the company’s predictions for its mobile device unit had often been wrong.

Icahn is also asking for investors to vote his candidates to Motorola’s board. The lawsuit was filed by The Icahn Group in Delaware chancery court because Icahn said Motorola has failed to release requested business documents about the mobile unit.

By Stephanie Huls